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Oakmark Select I Message Board

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  • kbjb@bellsouth.net kbjb Jun 27, 2011 6:06 PM Flag

    HRB the next WM

    Hey Vensh, tried to send you a message but got knocked off, guess Oakmark is upset with me. I respect your opinion based on previous posts and just wanted to know your take on the present market. What are you buying, selling, thinking, etc.? Whatever your thoughts, it will be good to hear from you.

    • It’s not Oakmark, it’s the low-grade service of Yahoo! Finance which is buggy and poorly maintained. This message board disappeared entirely for a dew days!

      The older I get, the less I try to have a “take” or “thoughts” on the market. I am lucky enough not to rely on the market for income. I am smart enough to know I have no way of guessing short-term trends. I am a student of Ric Edelman whose simple philosophy is that Mr. Market will treat you well over the long, long haul. He points out that inflation doubles prices every 22 years but the market beats that hands down. Thus he constructs portfolios of index funds in various sectors and re-balances when the relative allocations get out of whack. If you have been reading the past year’s financial blathering, you will find a great appreciation for index funds, with research showing few managed funds beat the indices over long periods of time. I think I read only 30% beat the averages over one-year periods and 5% over 20 years. That is sobering. If the “pros” can’t beat the market, what chance do I have?

      So the vast bulk of my investments of in index funds - ETFs because they are the cheapest. SCHB and VEU are my major holdings, with a little dash of SCHA and VWO. I also have VNQ, IGE and MOO. In some areas, like bonds, I think a capable manager is an advantage so I have GIM and PRHYX. I also have HYD.

      But, being a guy, I do a little hobby investing, such as OAKLX with the belief (delusion?) that a focused fund has the best chance of beating the averages.(Of course, it has the best chance of blowing up, as with the WM disaster!) I also bought some PAYX a few years ago which has a chance of doing well if the economy starts growing.

      The only sales I have made are those required by the IRS from my retirement funds, so I’m putting the money into my taxable account, seeking tax efficient products. So I bought a bunch of BRKB, which pays no dividend and over the decades has been a good growth stock.

      My only words of wisdom are to do some reading about using index funds as the core of your portfolio. Also, read some reviews of the book “Warren Buffett Invests Like a Girl - And So Should You.”

 
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